To view this page ensure that Adobe Flash Player version
11.1.0 or greater is installed.

Either scripts and active content are not permitted to run or Adobe Flash Player version
11.1.0 or greater is not installed.

DBweekly
U.S. companies slide in
RABOBANK’S GLOBAL TOP 20
GLOBAL DAIRY TOP 20, 2013
Rank
Dairy turnover 2012
2013 2012 Company
Country ($ U.S. billion)
1 1
Nestle Switzerland
30.1 2
2 Danone
France 19.4
3 3
Lactalis France
18.0 4
4 Fonterra
New Zealand
16.0 5
5 FrieslandCampina
Netherlands 13.5
6 6
Dairy Farmers of America U.S.
12.1 7
8 Arla Foods
Denmark/Sweden 10.8
8 7
Dean Foods
U.S 8.8
9 12 Saputo
Canada 8.4
10 10 Meiji
Japan 7.7
11 11 Unilever*
Netherlands/UK 7.5
12 15 Yili
China 6.5
13 -- Morinaga
Japan 5.8
14 14 Sodiaal*
France 5.8
15 16 Mengniu
China 5.7
16 9
Kraft Foods
U.S. 5.7
17 13 DMK
Germany 5.7
18 17 Bongrain
France 5.3
19 19 Schreiber Foods*
U.S. 4.5
20 18 Muller
Germany 4.2
* Estimate
Turnover data are for dairy sales only, based on 2012 financials and M&A
transactions completed between Jan. 1 and June 15, 2013. Pending mergers and
acquisitions not included in the dairy sales are the merger of 3A and Sodiaal, and
Yashii’s acquisition by Mengniu.
Source: Rabobank, 2013
Rabobank published a new report ranking the 20 largest
companies in the global dairy industry, highlighting the trends
affecting these giants. While the top five dairy players continue
to drive consolidation and maintain a firm hold on their
positions, there is much movement elsewhere, according to
Rabobank’s Food & Agribusiness Research and Advisory team.
China’s Yili and Mengniu continue their ongoing rise. In
contrast, the lack of a U.S.-based global consolidator means the
rankings of U.S. companies has declined, said Rabobank analyst
Tim Hunt.
Almost all of the top 20 firms felt the stiff headwinds of a
slow global economy, European Union recession and maturing
Western dairy markets in 2012. At least six companies saw
their dairy revenues decline in 2013 (in local currency terms).
Rabobank said slowing growth potential is placing more
pressure on companies to consolidate local industries and seek
growth via acquisition, contributing to the flurry of recent activity
among the top 20.
Companies are also actively positioning themselves to access
growth markets abroad.
Rabobank’s report said the Chinese government’s desire for
domestic consolidation and vertical integration, together with
5 Dave Natzke | DairyBusiness Update
dnatzke@dairybusiness.com local market growth, will almost certainly underpin further
growth of Chinese giants Yili and Mengniu.
Looking at the U.S., a combination of confinement to the
domestic market and lack of sizable acquisitions has seen the
rankings of U.S. companies decline in recent years. Kraft slipped
seven places following the split of its U.S. grocery business
from Mondelez, while Dairy Farmers of America also saw sales
decline in 2012. Dean Foods fell one place on the back of the
sale of WhiteWave and Morningstar and the contraction of the
U.S. fluid market.
“With the rapid growth of the Chinese giants, it is quite
possible that the U.S. dairy giants will be pushed further down
the list in coming years, with the global landscape largely being
shaped by others at present,” explained Hunt. “Size should not
be a goal in itself, and U.S. companies can participate in growth
offshore by developing their export businesses. However, with
much of the growth opportunities in dairy likely to come outside
of the U.S. in coming years, U.S. companies will need to think
about whether being an unaligned exporter with no offshore
footing will be enough to secure a fair share of the growth and
value available in the future.”
Visit www.rabobank.com/f&a